DLF lowers mop-up target, sets Rs500-550 IPO price band; issue to open on June 11

24 May 2007

Mumbai: Real estate giant DLF has set a price band of Rs500-550 per share for its initial public offer and lowered its mop-up target to a maximum of Rs9,625 crore, against earlier estimates of up to Rs13,600 crore.

"We have fixed the price band between Rs500 and Rs550. The issue will open on June 11 and close on June 14," a company spokesperson said.

DLF would enter the capital market with a public issue of 17.5 crore equity shares of Rs2 each through 100 per cent book-building process. The post-issue dilution of the issue would be over 10 per cent.

The company would raise Rs9,625 crore at the top end of the price band and Rs8,750 crore at the lower end.

The proceeds of the issue would be used to meet construction cost, land acquisition and repayment of debt, the company said.

DLF''s public issue would still be largest IPO as ONGC had raised Rs10,500 crore through follow-on-offer, a company official said.